New figures from London letting agent Foxtons have revealed that, compared to January 2022, which was an outlier, demand fell slightly by 4%. However, compared with the more traditional pre-pandemic rental landscape, such as that seen in January 2020, rental demand was up 77%. 

South London continued to be the most popular among renters, with the highest rental registrations by value compared to other London regions, while West London saw the highest year-on-year increase in demand, at 29%. North London registered the largest drop in demand, down 33% year-on-year. 

There were 19 renters competing for every new property in January 2023, 8% lower compared to the same month last year. Yet this is still significantly higher than the 11 renters per instruction seen in January 2020 and 2021. South and West London were the most competitive areas in January 2023, with 29 and 27 renters per new instruction respectively. 

The average rent in January 2023 remained flat for the third consecutive month, hovering around the recent record highs. This figure is 20% higher compared to January 2022, demonstrating the intensity of competition between renters in the London market.

Foxtons data found that rent has been rising across all areas of London, with increases of 25% in Central London, 20% in South London and 19% in East London. A three bed flat saw the highest year on year increase in average rental price, up 25% on January 2022.